Using AHP to evaluate the criteria of auto spare parts industry

Using AHP to evaluate the criteria of auto spare parts industry
Wu, Hsin-Hung; Tsai, Ya-Ning
2010-09-28 00:00:00
Analytic hierarchy process method is applied by surveying auto spare parts suppliers in Taiwan to identify the importance of 7 major criteria and 30 sub-criteria. Quality is the most essential criterion whereas production is the least important criterion identified in this study. Unlike the traditional viewpoints that local auto spare parts makers tend to emphasize on production, quality, service, technological capability, and price are relatively more important. In addition, four of five sub-criteria under the criterion of quality play an important role for the local suppliers to gain competitive advantages. By identifying the most essential criteria and sub-criteria, the performance based on those criteria and sub-criteria should be closely monitored and relentlessly improved under such competitive business environment.
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Abstract

Analytic hierarchy process method is applied by surveying auto spare parts suppliers in Taiwan to identify the importance of 7 major criteria and 30 sub-criteria. Quality is the most essential criterion whereas production is the least important criterion identified in this study. Unlike the traditional viewpoints that local auto spare parts makers tend to emphasize on production, quality, service, technological capability, and price are relatively more important. In addition, four of five sub-criteria under the criterion of quality play an important role for the local suppliers to gain competitive advantages. By identifying the most essential criteria and sub-criteria, the performance based on those criteria and sub-criteria should be closely monitored and relentlessly improved under such competitive business environment.